The past decade has been marked by an unprecedented wave of mergers in the tax, audit and accounting profession. Half of the top 300 firms have merged during the last ten years:contentReference[oaicite:5]{index=5}, and transaction volume shows no signs of slowing. But successful mergers don’t happen overnight. A recent report from Thomson Reuters highlights that the best deals occur when firms spend years improving culture, leadership and strategy before entering negotiations:contentReference[oaicite:6]{index=6}.
Start Preparing Today
Matt Rampe of Rosenberg Associates compares selling a firm to preparing a house for sale: you need to present it in its best light:contentReference[oaicite:7]{index=7}. That means raising rates to reflect value, pruning unprofitable clients and improving margins long before you approach potential buyers. Raising capital for expansion also makes firms more attractive:contentReference[oaicite:8]{index=8}.
The Marriage Checklist – What Buyers Want
Allan Koltin, a leading M&A adviser, offers a checklist of traits that buyers look for:contentReference[oaicite:9]{index=9}:
- Great leadership and partner alignment
- Strong organic growth and profitability
- A scalable practice
- Next‑generation talent and a clear succession plan:contentReference[oaicite:10]{index=10}
- Well‑defined niches that differentiate the firm:contentReference[oaicite:11]{index=11}
- Healthy culture and values – perhaps the most important factor of all:contentReference[oaicite:12]{index=12}
Why Culture Matters Most
Mergers often fail when merging firms underestimate cultural differences. A McKinsey survey cited in the report found that 44% of M&A leaders blamed cultural misalignment for failed integrations:contentReference[oaicite:13]{index=13}. To avoid this, firms should assess compatibility early. Does your potential partner share a similar client focus, work ethic and technology philosophy? Are both organisations committed to staff development and client service?
Case Study: HW&Co. and Citrin Cooperman
HW&Co., a $24 million firm with 14 partners, spent years expanding its healthcare niche and developing career paths. This clarity made it an attractive partner for Citrin Cooperman, a private equity‑backed firm:contentReference[oaicite:14]{index=14}. Both firms emphasised cultural fit, leadership alignment and regional growth opportunities. The lesson? Prepare your firm for a merger even if you’re not planning to sell yet.
How This Applies to Australian Firms
Australia’s accounting market mirrors global trends: rising compliance complexity, increased private‑equity involvement and consolidation among mid‑tier firms. Owners considering a sale or merger should begin due diligence years in advance. Focus on building robust internal systems, diversifying services and investing in talent. Those who wait until burnout will find fewer suitors and lower valuations.
Conclusion
Merger success isn’t about timing the market; it’s about building a practice that stands out. By investing in culture, leadership and scalable systems now, your firm will attract better offers, whether you merge in 2025 or beyond. The best deals go to those who are ready.